Juliet Risdon
Juliet Risdon is a Director of JML Property and a property investor.
Having established the company in 1994, JML Property offers Investment Property & Homes. It specializes in managing properties for owners and investors, and providing attractive and comfortable homes for tenants.
In the last three parts of this series we look at the final stage of home ownership or property investment. The part where you sell !
All property transactions are sizeable when compared with most other decisions.
It follows then that we should give these transactions the extra time and attention that they warrant, but this does not always happen.
In many instances it isn’t so much an issue of motivation, but rather not knowing the right questions to ask. This series deals with key questions that we CAN, and sometimes SHOULD, ask.
Knowing the answers to these questions can help to avoid misunderstandings and, in many cases, will save time, money or both.
The 15 questions you MUST ask when you are selling a property
If you decide to sell for whatever reason, it is natural to be concerned that you are making a good decision and getting the maximum value at the time for your property.
The trouble is you may sell and find yourself without property.
Of course it is important to do your homework about any potential property you are considering to sell, and with so many things going on you may forget to ask your agent the most important questions about selling.
The list below is in no particular order and this week we look at five more questions that may help you as a seller;
What am I going to do with the money after it’s sold ?
If you don’t already have a purpose for any excess funds, it is a very good idea to come up with a plan.
In the absence of anything else, putting the money in a high interest investment account may keep it safe in the short term.
There is always a temptation to spend funds if they are sitting around doing nothing, and it nearly always seems like a good idea at the time.
Re-investing in property or funds is a good idea in the long term, even if it is not the most exciting.
What costs are involved for the seller
Selling costs vary according to which law office is used, but in general you will find that fees for selling are relatively low.
There is an agency fee of course. In other parts of the world agency fees for selling property reach 5% – 6%, wheras in Macau the standard amount is 1% – 2%.
There will be a ‘mortgage cancellation fee’ charged by the bank for finishing the mortgage loan. This fee depends on how long the loan still has to run and the amount outstanding.
Lawyers fees include a translation fee should the contents need to be translated into English, and a general legal administration fee.
You can ask your agent to list and clarify all of these fees prior to the day of the sale, and they should be able to provide the information for you and avoid any nasty surprises.
What’s your experience ?
You might take it for granted that the agent looking after you knows what they are doing. But do they have a track record ?
If you are going to sell your property, you are looking for the highest price in the shortest time, and sometimes this can be grossly misunderstood.
The agent normally wants to lower the price and get the deal done, whilst the seller generally wants to wait to see if they can get a better price.
Somewhere in between lies a point that all parties can accept, but sometimes it takes an experienced agent to find that point.
How will you market my property?
You will want to know how, where and when your property is being promoted.
Is it going to be sent to a database, promoted in the media, floated around the internet ? There should be a clear marketing plan that is pointed towards the target market.
Clearly a hip studio apartment is going to have a different audience than a large, sprawling family penthouse.
How long should it take to sell my property ?
If you can ask this question in more detail, the answer may give you a more complete picture.
For example, if you want to sell for top price, it may take 6 months. But if you want to sell just below market price it may take 7 days.
Once you have a handle on the information you are better situated to make a decision, and at the same time you will have a verbal commitment from the agent of what is to be expected.
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